IDFR2023: remittance inflows in 2023–challenges and opportunities


Every money transfer to Ghana by expats from overseas is a crucial aspect of the country’s economy, with remittance inflows serving as a vital source of foreign exchange and supporting the livelihoods of millions of Ghanaians. In 2023, as Ghana continues to recover from the economic impacts of the pandemic, there are both challenges and opportunities in the realm of remittance inflows.

In this context, understanding the challenges and opportunities facing money transfer to Ghana in 2023 is of critical importance for policymakers, businesses, and individuals alike. In this article, we will explore some of the key issues affecting money transfer to Ghana and examine how businesses and individuals can adapt to meet these challenges and take advantage of the opportunities presented.

Challenges for remittance inflows to Ghana in 2023

Despite the steady growth of remittance inflows to Ghana, several challenges still need to be addressed. Some of the main challenges that expats face for money transfers to Ghana in 2023 include the following:

High transaction fees

One of the biggest challenges facing remittance inflows to Ghana is the high cost of sending money. According to the World Bank, the average cost of sending money to Ghana was 8.5percent in the third quarter of 2020, which is significantly higher than the global average of 6.8percent.

High transaction fees can make it difficult for individuals to send money to Ghana, particularly those who are sending small amounts.

Limited access to formal financial services

Many Ghanaians, particularly those in rural areas, do not have access to formal financial services. This means they do not have bank accounts or access to mobile money platforms, making it difficult to receive remittance payments. This lack of access to trusted financial services also hinders economic development, as it limits the ability of people to save, invest, and access credit. Thanks to ACE Money Transfer, Ghanaian expats can conveniently transfer funds back home at the lowest fees yet at the highest exchange rates.

Currency fluctuations

Currency fluctuations can also pose a challenge for money transfers to Ghana. The Ghanaian cedi has experienced significant fluctuations in recent years, which can make it difficult for senders and recipients to predict the value of their remittances. Making an online money transfer to Ghana using ACE’s services is the best solution to these issues as you get up-to-date currency exchange rates, which you can check at any time on the live currency calculator available on ACE’s website and mobile app.

Opportunities for online money transfer to Ghana in 2023

Despite these challenges, there are also several opportunities for online money transfers to Ghana in 2023. Some of the main opportunities include:

Adoption of digital currencies

Adopting digital currencies, such as Bitcoin, can help reduce the high transaction fees associated with traditional money transfer methods. Digital currencies offer fast, secure, and low-cost transactions, making them an attractive option for remittance payments.

Moreover, using digital currencies can also help bypass the need for intermediaries, thus reducing the costs further.

Increased use of mobile money

The increased use of mobile money platforms can help address Ghana’s limited access to formal financial services. Mobile money platforms offer a convenient, low-cost, and secure way to send and receive money, particularly in rural areas where there are few banks or ATMs.

Additionally, mobile money platforms can be integrated with other financial services, such as microcredit and insurance, to support economic development further.

Adoption of block chain technology

Adopting blockchain technology can help address some of the challenges associated with remittance payments, such as high transaction fees and the lack of transparency. Blockchain technology offers fast, secure, and low-cost transactions and transparency in the payment process. This can help to reduce the costs associated with remittance payments and increase trust between senders and recipients.

The role of government in promoting remittance inflows to Ghana

While the private sector largely drives the challenges and opportunities that remittances to Ghana have to face, the government also has an important role to play in promoting the flow of funds. Convenient, secure, and economical mechanisms to send money to Ghana from overseas can aptly resolve several challenges expats face. Here are some ways that the Ghanaian government can support remittance inflows:

Reduce transaction fees

The government can work with MTOs to reduce transaction fees, particularly for small transactions. This can be done by negotiating lower fees with MTOs or by promoting the use of digital currencies, which offer lower transaction costs.

Improve financial infrastructure

The government can invest in financial infrastructure, such as building more bank branches and ATMs, to increase access to formal financial services. The government can also work with mobile network operators to promote the use of mobile money platforms.

Provide incentives for remittance inflows

The government can provide incentives for remittance inflows, such as tax breaks or reduced fees for receiving remittance payments. This can encourage more Ghanaians abroad to send money home, which can positively impact the local economy.

Promote financial literacy

The government can promote financial literacy to help Ghanaians better understand their financial options and make informed decisions about sending and receiving money. This can help to reduce the costs associated with remittance payments and increase financial inclusion.

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